Occidental Petroleum Cuts 2020 Capital Budget Again
March 25 2020 - 8:47AM
Dow Jones News
By Colin Kellaher
Occidental Petroleum Corp. on Wednesday said it is further
slashing its 2020 capital spending plans as it grapples with a
collapse in oil prices amid a slowdown in economic activity due to
the coronavirus pandemic.
The Houston energy company said it now plans to spend $2.7
billion to $2.9 billion this year, a midpoint reduction of 47% from
its original budget of $5.2 billion to $5.4 billion.
Occidental earlier this month had said it would reduce the
budget to between $3.5 billion and $3.7 billion as it announced an
86% reduction in its quarterly dividend.
Occidental on Wednesday also lowered its full-year production
guidance by 6% and said it would reduce 2020 operating and
corporate costs by at least $600 million compared with its original
plan.
The company said it now expects annual production at current
commodity prices of 1.275 million to 1.305 million barrels of oil
equivalent a day, down from prior guidance of 1.36 million to 1.39
million BOE a day.
Shares of Occidental rose 3.4% to $11.05 in premarket trading
Wednesday.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
March 25, 2020 08:32 ET (12:32 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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